Microsoft to open $1.1 billion ‘Project Alluvion’ data center in Iowa

Microsoft is the company behind a $1.13 billion data center known as “Project Alluvion,” taking shape in West Des Moines, Iowa. The Quad City Times and The Des Moines Registerreport that construction will begin this Spring, with the announcement made Friday by Gov. Terry Branstad and Iowa economic development officials.

“It’s now official, Microsoft is the new million dollar — billion dollar — economic development project,” said Gov. Branstad in welcoming the “household name” to Iowa. Iowa is already the site of one Microsoft facility, but with the new facility it will be among the biggest capital outlays by an outside company in the state.

Facebook also operates a data center in Iowa.

The new 1.16 million square foot project, spanning some 154 acres on the Willows Creek Golf Course, will bring 84 jobs to the region.

Companies such as Microsoft need added data center capacity, especially as more services move to the cloud. It plans to continue opening new facilities in the near term, noting in a recent SEC filing that capital expenditures will increase “in coming years in support of our cloud and devices strategy.”

“We really do think that central Iowa will be the leader in global tech companies when it comes to data-center and related businesses,” West Des Moines Mayor Steve Gaer told the Quad-City Times. “We think we have huge momentum.”

The Central Washington area around Quincy also has become home to many data center projects, including those operated by Microsoft.